I've done the BRR now how do I do the last R?

[Val J.]

Need advice and/or suggestions. I purchase a property last May. I'm interested in perhaps doing a cash out refi. I paid cash for the property. I called a mortgage company in December they told me I had to wait a year to cash out. Question? Do I only have to use local mortgage companies to do a cash out? And, what % of the property can I cash out? Purchase price only or ARV?

[Ben Wilkins]

@Val J. - when buying a property, financial institutions will usually loan based on a percentage of the purchase price (although there are some that will loan based on appraisal).

After you own the property, you can refinance based on appraisal value - that's why the BRRRR strategy works when you force appreciation on the investment, allowing you to take out more than you put in (hopefully)

Call around and find a different mortgage company that will refinance on a shorter term. Mortgage brokers can help here if you have any in your network.

You do not have to use a local mortgage company, although local credit unions or smaller local banks are usually interested in portfolio investing.